Foreclosures are more profitable than loan modification.

This was kind of a sad story to read but unfortunately I had read something like this before and had a feeling this might be the case.  Apparently because of the way our laws are written and the way loan servicing works foreclosing on a property becomes more profitable than actually modifying the loan.
Short sales and foreclosures are all around us.  In Alameda the combination of Short Sales and Foreclosures make up about 18% of the total market.  For those who were looking to do a loan modification before they ever got to a short sale it may appear the odds are stacked against them.
Reading this made me mad, I am not sure exactly what to do about it but it doesn't really help the market to have so many short sales and foreclosures.  Unfortunately if those people who would like to stay in their homes can't modify their loans the only other option is to try and do a short sale or let it go to foreclosure.  Sad but true.
Read the original article here.